Bitcoin hacks a significant warning to digital currency users

14 February 2014

A spamming attack targeting bitcoin exchanges has provided a warning to those using the digital currency, experts have claimed.

The distributed denial of service (DDoS) attacks have created thousands of phantom transactions, which has forced a number of exchanges to halt withdrawals until they can determine whether transactions are real.

Micky Malka, a board member of the Bitcoin Foundation, explained that bitcoin is still in its infancy and can be vulnerable to these types of attacks.

However, he went on to note that it will grow over time, before stating that nobody should be investing more than they can afford to lose of the cryptocurrency's success.

The frequency of attacks on exchanges and the confusing classification of the digital currency around the world may act as a warning to those considering using or accepting the currency as a payment method.

Experts suggested that the main lesson to come from the attacks is that bitcoins are not as liquid as first indicated, as accounts have been frozen, meaning bitcoins cannot be redeemed.

By Asim Shah

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